Shares of Celgene (CELG) - Get Report are in rally mode today following this mornings' second-quarter earnings report. The stock is up over 2.5% on heavy volume as it extends last week's key trend line break.

This very bullish action is leaving behind a solid foundation from which Celgene can mount a new bull leg.

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As the Brexit panic selloff ran its course,  Celgene was trading back down near a major support zone. This area, between $93 and $94.50, has held important lows over the last 52 weeks. Celgene's 2015 and initial 2016 lows are near the lower band while the March and June lows held the upper band. The rebound off the June 27 bottom, which is getting big boost today, could leave this key area well behind in the rearview mirror.

Today's breakout move extends last Thursday's trend line break. Celgene closed above an overhead trend line that links the April and June highs, indicating a more bullish set up heading into earnings. The stock now has a very solid base underneath following last week's breakout. This area includes the June high near $108.50 at the upper band and $106 near the lower band.

In the near term, patient Celgene bulls should consider a drift down to this area as a low-risk buying opportunity. On the upside, the $112 area is key hurdle. Once past the April peak, the stock will have a clear path higher.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.